Södra Invests To Increase Pulp Production At Mörrum

Växjö, Sweden — June 17, 2014 — Södra’s Board has decided to invest approximately SEK 700 million to increase pulp production at Södra Cell Mörrum. A new wood-chip plant will be constructed and one of the mill’s two pulp lines will be upgraded.

In February of this year, Södra’s Board decided to invest just over SEK 4 billion to increase capacity at the Värö pulp mill. Investments are now also being made in the Mörrum pulp mill, where Södra currently operates two parallel pulp lines for the production of softwood pulp and textile pulp (dissolving pulp).

“This is another investment that strengthens our market position and competitiveness for market pulp. The expansion of pulp production is a key part of our Group strategy and a crucial feature of our efforts to develop our operation,” said Lars Idermark, CEO of Södra.

The existing facility at Mörrum currently produces a total of 380,000 tonnes annually. The investment is expected to increase production to about 425,000 tpy.

“The investment will enable us to meet the growing demands of our customers for softwood pulp and the increasingly popular textile pulp. It will enhance our energy efficiency, result in even higher quality pulp and improve the working environment,” commented Gunilla Saltin, President of the Södra Cell business area.

The project includes a new wood-chip plant with two separate wood lines, one for softwood-chip and one for hardwood-chip production, in addition to a refit of the softwood line, where the existing washing equipment will be replaced.

The first phase of the project is scheduled to be carried out in 2014-15 with completion expected March 2016.

Södra Cell Mörrum currently produces high-quality pulp and is the only Södra mill to produce textile pulp, for which demand is growing rapidly. Södra Cell is one of the largest players in the world in the area of softwood pulp and operates three pulp mills in Sweden: Mörrum, Mönsterås and Värö.